Westminster Asset Management

Who we are

Westminster Asset Management is an independent private client investment and asset management boutique. 


 We provide investment solutions to high-net-worth individuals, family offices, and their advisers, with an emphasis on capital preservation and clear achievement of objectives combined with a highly personalised service. 

 

Our asset management service provides a number of rigorously executed investment strategies underpinned by a

thorough investment process that focusses on a number of core fixed income, equity and multi-asset solutions designed to meet the specific objectives of our clients. 

 

We are licensed and regulated by the Jersey Financial Services Commission.


What we do

Philosophy and Investment Style


We focus on an absolute return style of management, which places greater  emphasis on  capital  preservation  than traditional managers.  We structure and manage client’s portfolios to meet their ongoing and unique requirements, mindful that replacing capital may be a difficult or impossible task in the short-term.


As an independent asset manager, we can consider investment opportunities from an unrestrained universe and may use the widest opportunity set to achieve these objectives.


Investment Philosophy - Core Principals


a)     Diversification:  we use a wide range of asset classes to produce genuinely diversified portfolios.  This provides the broadest range of investment opportunities, as well as a superior risk to return profile when compared to traditional, single-asset portfolios.  We use a combination of equities, bonds, hedge funds, property, and commodities.


b)      Active Management:  we take an active approach to asset allocation, with absolute returns in mind, rather than slavishly

adhering to asset allocation models.  The ability to make large moves in asset allocation allows us to steer away from markets and asset classes where we feel the risk to return outlook is not favourable, leaving us free to invest when and where our conviction is high.


c)     Risk Management:  we operate all portfolios within strict risk management guidelines, which include asset class and individual position restrictions, as well as historical stress testing.  Our investment style focuses on investments into companies that have strong balance sheets, business models and decent dividends which are generally less risky than the broader market.  Our investment process allows for considerable flexibility to accommodate individual client requirements as well as for ensuring a consistent application of our market strategy.  Specialist and bespoke portfolios are reviewed frequently by the investment office.


d)     Protective Strategies:  we seek to incorporate holdings that have the potential to protect portfolios during downturns by

incorporating assets that are defensive and by actively seeking to identify assets that have the potential to be “antifragile”.  At times, and according to mandate we may use derivatives in portfolios for protective and defensive strategies. Call options and structured notes may also be used to provide exposure to markets where we feel that the risks do not merit an outright investment, and we may use put options or warrants to protect existing investments when we believe the market is at risk of a setback. We actively manage portfolio currency exposure and seek to avoid passive currency allocations.


Key differentiators of the philosophy


a)     Knowledgeable and highly experienced investment team, with complimentary backgrounds and skill sets.

b)     Rigorously defined investment process which successfully blends quantitative and qualitative inputs.

c)     Benchmark agnostic, objective focused, investment approach which flexibly allocates the multiple asset classes.

d)     A focus on and experience in investment management with capital preservation and income emphasised.


Portfolio Management


Client portfolios are managed by senior individuals. However, the overall portfolio strategies are managed by the investment team.


Model Portfolios and Permitted Deviation


Portfolio managers adhere closely to strategies and will only deviate from the model when certain mandate restrictions require them to do so.


Investment Policy and Strategy Meetings


Asset allocation meetings to discuss top-down views, which influence the overall positioning of our portfolios are regularly held.  Security selection and monitoring process, and the management of individual strategies and managed by specific teams on an ongoing basis. 


Investment Policy Decisions and Subsequent Documentation


Investment policy decisions are made collaboratively by the investment teams.  In the event of disagreement or failure to arrive at a consensus view, the CIO will make the final decision.  The CIO will be fully accountable for investment policy decisions taken.

Strategies

Defensive Income Strategy £

The Defensive Income Portfolio invests largely in investment grade bonds and includes exposure to high yield bonds, emerging market debt, equities and alternatives.


The strategy aims to provide a defensive income and growth strategy that provides a strong flow of regular income from its predominantly fixed income asset allocation as well as the benefits of liquidity and security this asset class provides. Exposure to equities and alternative investments (such as property and hedge funds) will typically be via managed funds and exchange traded funds that complement the objectives of the portfolio.


The Defensive Income strategy provides an actively managed portfolio suitable for investors with a low tolerance to risk and/or a shorter investment horizon (from 3 years). It is particularly suitable for investors who need to drawdown against their investment to meet their spending needs and is equally suitable for an investor who seeks growth and is happy to re-invest income to do so subject to their tax circumstances. Given the high fixed income component and as indices are typically weighted towards the most indebted companies and sectors, we take a non-benchmark approach but will be aware of benchmark performance.

MANDATES

  • Defensive Income • low

Corporate Bond (Medium Duration) Strategy £

This strategy invests largely in investment grade corporate debt providing a well-balanced and diversified, medium duration portfolio of corporate bonds. These are typically rated single-A and triple-B to provide an income producing investment strategy with exposure to credit opportunities.


Our house style is to focus on creating a well-diversified portfolio, by sector and issuer that targets a duration of 5 years +/-1.5 years. As indices are typically weighted towards the most indebted companies and sectors, we take a non-benchmark approach but will be aware of benchmark performance and report against the Bloomberg Sterling Aggregate Corporate 1-10 Year Bond Index.


The strategy provides an actively managed fixed income portfolio suitable for a medium to long term investor with a low to medium tolerance for risk. This strategy provides a balance between security, liquidity and income (or growth via re-investment).  

MANDATES

  • Corporate Bond • low

Capital Growth Strategy £

The Capital Growth Strategy provides a medium to long term strategy that aims to provide real growth of capital with an emphasis on capital preservation by investing in a well-diversified multi-asset class portfolio. The strategy is suitable for investors with a low to medium tolerance to risk and an investment horizon of at least 5 years.


The portfolio seeks to combine real growth of capital with an emphasis on capital preservation. In order to do this the portfolio has relatively wide asset allocation guidelines as well as using a wide number of asset classes.


The portfolio has a return target of 6% absolute; CPI +2%; and/or Cash +2%. The portfolio takes a benchmark agnostic approach.

MANDATES

  • Capital Growth • low

Balanced Income and Growth Strategy £

The Balanced Income and Growth Strategy provides a medium to long term strategy that aims to provide a relatively high and growing income together with capital growth by investing in the equity and debt securities of a diversified range of companies from a mix of industries.


The strategy manages risk by favouring equity investment in companies with little debt, quality balance sheets and resilient earnings. Where businesses have higher debt levels and/or more cyclical earnings we favour fixed interest securities and a more senior place in the company's balance sheet. This ensures that whilst the portfolio has a well-diversified industry exposure, we are always invested in the relatively safer part of the company's capital structure.


The strategy is suitable for investors with a medium tolerance to risk and an investment horizon of at least 5 years. The portfolio generates a relatively high level of income and is therefore suitable for investors with a drawdown requirement.


Investors solely focused on growing their capital can benefit from reinvesting any income generated back into the portfolio subject to their tax circumstances. Given the concentrated and objective focused approach, we take a non-benchmark approach but will be aware of

benchmark performance.

MANDATES

  • Balanced Income and Growth • medium

Equity Global Growth Strategy £

The Equity Global Growth Strategy invests in a concentrated portfolio of leading growth companies globally, providing a well-balanced and diversified portfolio of equities that are typically of larger market capitalisation companies.


This strategy aims to provide long term growth by providing investors with a segregated portfolio of quality growth companies with strong balance sheets and compound growth opportunities. This provides a diversified portfolio of global equities considered amongst the best in class in their respective fields. The Equity Global Growth Strategy does not aim to reproduce a “benchmark” return, but rather focuses on meeting investor expectations.


The strategy is suitable for investors with a higher tolerance to risk or as part of a balanced programme of investments. It is not suitable for investors who need to drawdown against their investment to meet their spending needs (or at least from this portion of their investments).


Income from the portfolio is anticipated to be low as the manager will emphasise growth and seek those companies able to generate ongoing high returns on capital invested. Given the concentrated, objective focused approach we take a non-benchmark approach but will be aware of benchmark performance.

MANDATES

  • Equity Global Growth • high

Equity Income & Growth Strategy £

The Equity Income & Growth Strategy invests largely in developed world equities, providing a well-balanced and diversified portfolio of equities that are typically of larger market capitalisation companies.


This strategy aims to provide lower volatility, medium- to long-term equity investment and some inflation protection. The strategy provides investors with a segregated portfolio of defensive growth equities that pay dividends that can be expected to grow. The Equity Income & Growth Strategy does not aim to reproduce a “benchmark” return, but rather focuses on meeting investor expectations.


The strategy is suitable for investors with a higher tolerance to risk or as part of a balanced programme of investments. Given the concentrated and objective focused approach, we take a non-benchmark approach but will be aware of benchmark performance. 

MANDATES

  • Equity Income and Growth • high

MPS £

MPS

MANDATES

  • MPS Cautious • low

  • MPS Balanced • medium

  • MPS Growth • high